Bitfarms Ltd. has announced significant leadership changes as the company navigates a takeover bid and governance dispute with Riot Platforms Inc. On August 13, 2024, Bitfarms appointed its CEO, Ben Gagnon, to the board of directors. Gagnon, previously the chief mining officer, is credited with driving the company’s growth strategy and is now stepping into a broader leadership role to stabilize the company amid escalating tensions.
The leadership shake-up also includes the resignation of co-founder and chairman Nicolas Bonta, who was replaced by Brian Howlett, the current lead director and newly appointed independent chairman. These changes come at a critical time, as Riot Platforms, which recently increased its stake in Bitfarms to 18.9%, has been vocal in its criticism of the company’s governance. Riot has accused Bitfarms’ board of poor oversight and has been pushing for significant changes within the company, including the removal of Bonta and other directors.
In July, Riot Platforms proposed a comprehensive plan aimed at improving Bitfarms’ operations and governance, which included the nomination of three new directors. This proposal was coupled with a $950 million acquisition offer, which Bitfarms’ board ultimately rejected. The rejection led to an escalation in the dispute, with Riot calling for a special shareholders’ meeting in October to address these governance issues directly with Bitfarms’ shareholders.
Riot’s growing influence, coupled with the ongoing legal disputes involving Bitfarms’ former CEO, has put additional pressure on the company’s board. As Bitfarms prepares for the upcoming shareholders’ meeting in October, the company is also strengthening its executive team by appointing Liam Wilson as chief operating officer later this month. The October meeting is expected to be a critical juncture for the company, potentially determining its future direction amidst the ongoing conflict with Riot Platforms.
